AutoLeadStar, a Jerusalem-based startup that has developed a digital consumer data and experience platform for the automobile sector, announced on Monday the completion of a $40 million Series C expansion round headed by Riverwood Capital and including participation from current investors.
To date, AutoLeadStar has raised a total of $57 million from investors such as PICO Venture Partners, Target Global, and Aleph.
Aharon Horwitz, co-founder, and CEO of AutoLeadStar told Calcalist that the company’s value went up a lot in the most recent round. “Our revenue has doubled every year over the past three years and the valuation has increased significantly since our previous round,” said Horwitz.
Nearly 1,000 dealerships in the U.S. and Canada, including many of the top dealer groups, use AutoLeadStar’s software to intelligently automate systems that were once separate, out-of-date, and done by hand.
The company’s AI-powered marketing automation technology for auto dealers and manufacturers enables personalized marketing, digital commerce, and consumer engagement that helps millions of decisions be made and carried out every day.
Horwitz, Yishai Goldstein (CTO), and Eliav Moshe started AutoLeadStar in 2017. (CPO). The principal at Riverwood Ramesh Venugopal will be added to the board of the company.
Currently, AutoLeadStar has 105 employees, with 60 located in Israel and the remaining positions filled in the United States.
“Interest rates are rising and so are loan rates for purchasing cars, but there is still a great demand for new vehicles following the pandemic,” Horwitz explained.
“Dealerships are investing a lot more in technology these days because they made a lot of money over recent years. There are over 17,000 dealerships in the U.S. and thousands of other private dealers.”
Since the early 1900s, car dealerships have been an important part of U.S. culture. It is worth more than $1.5 trillion in the U.S. alone, $150 billion is spent every year on advertising, people, and operations, and it has strong ties to local and regional economies. However, it is still ready for digital transformation.
“The customer car purchasing experience is rapidly changing and the automotive industry is thirsty for new technologies to serve the modern consumer,” said Horwitz.
“Car dealerships are massive drivers of economic growth and value in communities, and especially given the current economic climate, we are proud to be helping dealerships succeed in the digital era.”